MarketView CEE Big Box Logistics

www.cbre.eu/research

CB RICHARD ELLIS

May 2011

OVERVIEW Economic fundamentals stronger; future prospects remain uncertain External demand has remained the key driver of economic growth in CEE. A strong link with German manufacturers has kept industrial output in Central and Eastern Europe (CEE) above the level in the Eurozone. Due to the strong basis achieved in 2010, export growth i lik l t slow somewhat i th second h lf (H2) of 2011 Th revival of d th is likely to l h t in the d half f 2011. The i l f domestic ti demand remains subject to consumer confidence which is strongly linked to unemployment. A strong upturn in employment is not expected in 2011 outside of Eastern Europe. As a consequence consumer demand is likely to grow at a moderate level during 2011 in most markets in the region. GDP growth in South Eastern Europe (SEE) has also recently turned positive in most countries. Development picking up in larger markets; focus shifts from capital to regional cities After the logistics development market almost came to a halt during the economic downturn, the market has recently seen development activity picking up again. The year 2011 is likely to see an increase in project deliveries, mainly based on development activity in Poland and Russia. Most other markets, however, are expected to see another year-onyear (y-o-y) drop in deliveries. Increased productivity at manufacturers and their link with regional CEE markets has caused development activity to move from capital cities towards regional cities. This is especially the case in the Czech Republic and Poland but also to some extent in Hungary and Slovakia. In most markets developers can only develop based on a built to suit (BTS) agreement or when a significant pre lease is signed built-to-suit pre-lease signed. Vacancy continues downward trend; arising opportunities not always anticipated Average vacancy in CEE declined further to 16% at the end of Q1 2011. Considerable differences exist around the region. The Bratislava region in particular and regional markets such as Brno have seen vacancy dropping below 3% and 5% respectively. Especially for Bratislava the development market is not yet anticipating this low level of supply and rents may selectively start trending upwards there. Most other larger markets are still facing considerable vacancy (10-15% and higher) clearly indicating why (10 15% development has generally remained at a relatively low level in most markets. Prime rents bottoming; prime yields have compressed and investment is on the rise Prime rents have changed little across the region over the last six months. In Central Europe (CE) higher take-up levels combined with low levels of completion have helped rental levels in bottoming. On the other hand in regional cities the pipeline under construction (U/C) is increasing pressure on rents. Rental increases were registered in Moscow on the back of a high level of absorption achieved in 2010. Prime yields have g p y compressed further, however, to a more limited extent than during the first half of 2010. Besides the acquired logistics assets in the Europolis portfolio, a large portfolio sale in Czech Republic also triggered the investment volume this year. After a year-on-year (y-o-y) increase of 40% in investment turnover in the CEE industrial segment in 2010, year-todate volume in 2011 amounts to around 550 million and is already surpassing the 2010 level by 30%.
CEE Industrial Output and Total Logistics Leasing Activity*
Total Leasing Activity Industrial production, (Q4 2007=100%)
110%

Quick Stats
Change from Q1 10 Q4 10 Total Leasing Activity Completions Vacancy Rate Rents Investment Turnover

Hot Topics
Economic fundamentals stronger; ffuture prospects remain uncertain Development picking up in larger markets; focus shifts from capital to regional cities Vacancy continues downward trend; arising opportunities not always anticipated Prime rents bottoming; prime yields have compressed and investment on the rise

800

Total Leasing Activity (thousand sq m) g

Industrial production (Q4 2007=100%) 4

600
100%

400

90%

200

80%

2007 Q4

2008 Q1

2008 Q2

2008 Q3

2008 Q4

2009 Q1

2009 Q2

2009 Q3

2009 Q4

2010 Q1

2010 Q2

2010 Q3

2010 Q4

2011 Q1

* Total for Czech Republic, Hungary, Poland, Romania and Slovakia. Source: Oxford Economics, CB Richard Ellis (May 2011)

2011, CB Richard Ellis, Inc.

MarketV View CEE Big Box Logistics x

ECONOMIC BACKGROUND Despite uncertainty about the medium to longer term economic prospects, economic growth in most CEE markets has turned positive in recent quarters. The two l largest economies i the region, R i and i in h i Russia d Poland, are expected to expand by over 4% y-o-y in 2011. Germanys strong performance in 2010 has helped most export driven CEE markets. Backed by stronger currencies and commodity prices, Ukraine and Russia, in particular, have also turned the corner. Away from manufacturing, consumer spending has not really picked up in most markets yet. Poland and Russia are the exception to this. High unemployment rates and fragile consumer confidence indicate that a rebound of domestic demand should not be expected in most other markets before 2012. The economies in South-eastern Europe (SEE) have only recently seen economic growth rates turn positive with export and do es c co su p o acce e a g o dep essed domestic consumption accelerating from depressed levels. MODERN LOGISTICS STOCK Modern logistics in stock CEE markets (capital cities and St. Petersburg) amounts to 16 million sq m. Another 5 million sq m of modern logistics space is located in regional cities, mostly in Poland and the Czech Republic. Due to the considerable slowdown in the development pipeline, the amount of completions in the major CEE cities just reached around 1 million sq m in 2010 compared to 2.4 million sq m in 2009. This equates to a decline of 60%. In line with the continuing differences in economic performance across the region, industrial real estate markets are at different points in the development cycle. A number of the larger markets, such as Poland and Russia, are seeing development activity picking up again, whilst most smaller markets experience only limited new developments taking place. B d on d l l Based developments U/C across the h region, 2011 is likely to see a similar level of completions as registered in 2010. Based on a construction period of 6-8 months this picture is unlikely to change significantly by towards the end of the year. Apart from Moscow and St. Petersburg, other major CEE cities are still waiting for the development market to pick up. However, an interesting trend has become visible in the regional markets recently. Based on increased manufacturing output, developers have turned their activity toward the regional markets of Central Europe (CE). Regional markets are traditionally more driven by production than capital city markets where retail plays a more important role.

Real GDP Growth (y-o-y)

CE SEE Russia Eurozone

10.0% 7.5% GDP growth (y-o-y) 5.0% 2.5% 0.0% -2.5% -5.0% -7.5% -10.0% -12.5% 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1e Q2f Q3f Q4f Q Q Q Q Q Q Q Q Q e Q Q3 Q

Source: Oxford Economics (May 2011)

Components of GDP in CE Economies*

Domestic consumption Export

6.0% Domestic consumption change (y-o-y) 4.5% 3.0% 1.5% 0.0% -1.5% -3.0% -4.5% 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1e Q2f Q3f Q4f

20.0% 15.0% 10.0%

Export growth (y-o-y)

5.0% 0.0% -5.0% -10.0% -15.0%

* Weighted average of data for Czech Republic, Hungary, Poland, Romania and Slovakia. Source: Oxford Economics (May 2011)

Industrial Production in CEE and Eurozone

CE 15.0% 10.0% Industrial production change (y y-o-y) 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1e Q2f Q3f Q4f SEE Russia Eurozone

Source: Oxford Economics (May 2011)

Modern Logistics Stock in CEE

Stock 3.5 3.0 2.5 25 2.0 Vacancy Rate
15%

Vacancy Rate
30% 25% 20%

Stock (million sq m)

1.5 1.0 0.5 0.0 Moscow arsaw Wa Kyiv St Peters sburg slava Bratis Belg grade S Sofia PL, Si ilesia Bucharest Buda apest PL, Wro oclaw PL, Ce entral PL, Po oznan CZ, Plzen P Pra ague CZ, Brno
10% 5% 0%

May 20 011

Source: CB Richard Ellis (May 2011)

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CEE Logistics Completions and Pipeline (U/C)

400
Completions 2009 Completions 2010 Expected completions 2011*

300 Thousand sq m

200

100

Looking at country-wide vacancy rates, the increased pipeline U/C in Poland may initially seem a bit surprising. Vacancy, however, is generally lower in regional cities than in Warsaw and the majority of new projects start based on BTS agreements Even countries with less agreements. mature regional markets such as Hungary or Slovakia are also witnessing increasing interest for regional locations. Developers, however, have remained cautious with speculative projects, especially in regional markets. Trading of development land has picked up as well. Infrastructure developments are an important driver in deciding on l d idi locations. N i New transactions can b f i be found i d in Romania, for example, where along planned motorway connections land transactions are taking place again after a long period of illiquid market conditions.
140% 120% 100% Take-up in Q4 2007 =100% 80% PL, Wroclaw , CZ, Plzen CZ, Brno

MarketV View CEE Big Box Logistics

0 Bucharest Warsaw Moscow Kyiv St Petersburg P P PL, Central Belgrade PL, Silesia Bratislava Sofia Budapest Prague P PL, Poznan

* Deliveries in Q1 also included. Source: CB Richard Ellis (May 2011)

Industrial Demand in CEE Capitals and Regional Cities*

Regional Cities Capital City Take-up trend in Regional Cities Take-up trend in Capital Cities

800 700 600 Thousand sq m 500 400

DEMAND As a result of stronger manufacturing output, demand for logistics premises has also increased. Total leasing activity (TLA) in CE and Romania is getting close to the average seen in 2007-2008. As industrial markets are maturing, demand patterns are also becoming more diverse. In first generation logistics schemes in CE capitals lease renegotiations have increased in importance as availability in most markets is p y still considerable. Renewals made up roughly a third of the TLA in CE and almost half of TLA in Hungary. Relocation of production and / or supply chain optimizing are also impacting on the demand for logistics to a great extent. Not surprisingly, developers would rather wait for committed tenants - either on a BTS-basis or by securing (a) significant pre-lease(s) - before starting green field projects. projects Exceptions to this can be found on existing logistics parks that are being expanded. In line with increased development activity in regional cities demand has picked up strongly in regional markets too. After suffering significant declines in 2008-2009, take-up in regional cities has recovered more quickly compared to capital cities in 2010. While renewals formed an increasing share in TLA at the cost of new take takeup in capital cities, demand in regional cities consists of new BTS-solutions and pre-leases for new schemes. VACANCY Vacancy rates have continued to decline in almost every market across the region. The average vacancy of 15.9% in i CE and R d Romania shows a d li i h decline of over one f percentage point compared to the peak measured a year ago. Some markets like Bratislava, Kyiv and Prague have vacancy rates at considerably lower levels than a year ago. The most significant decline in vacancy, however, was registered in Russia where vacancy decreased sharply over the last year to 7% in Moscow and 12% in St. Petersburg. Among the capital cities vacancy rates are the highest in Budapest and Greater Warsaw (above 20%), however, the vacancy is significantly lower within Warsaw boundaries (10% in Sector I). The lowest rate is currently registered in Bratislava with only 3%.
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60% 300 200 100 0 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 40% 20% 0%

* Data for Czech Republic, Hungary, Poland, Romania and Slovakia. Source: CB Richard Ellis (May 2011)

CEE Industrial Completions and Net Absorption*

Completion Net Absorption Vacancy Rate

500

20%

400 Thousand sq m

16%

Vacancy Rate (%)

300

12%

200

8%

100

4%

0 2007 2007 2007 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

0%

* Data for Bratislava, Bucharest, Budapest, Prague and Warsaw. Net absorption in Q1 2010 was negative. Source: CB Richard Ellis (May 2011)

Net Effective Logistics Rents in CEE

Range (MAX-MIN)
8.0 7.0
EUR/sq m p.m.

6.0 5.0 4.0 3.0 2.0 Warsaw Bu ucharest Prague St Petersburg Br ratislava B Belgrade M Moscow Kyiv PL, Central PL, Poznan , B Budapest PL Silesia L, C CZ, Brno Sofia

May 2011 1

Source: CB Richard Ellis (May 2011)

Market tView CEE Big Bo Logistics ox

Partly as a consequence of the slowdown in supply growth in 2010, annual net absorption in CEE exceeded the level of completions by a third. Besides strong net abso p o absorption in Russian cities, CE and Bucharest registered uss a c es, C a d uc a es eg s e ed three consecutive quarters of positive net absorption. The level of absorption is at a considerably lower level than before the crisis, a factor reflected in the low level of development activity in many of the major markets. For some of the markets this cautiousness is remarkable in light of the low levels of vacancy reached in some cities in CEE. Based on todays pipelines U/C, vacancy rates are expected to fall further during 2011 across the region. PRICING Net effective rental levels for logistics properties in CEE have remained mostly unchanged compared to November 2010, and vary by sub-region to a great extent. F th capital city markets i CE net effective t t For the it l it k t in t ff ti rents have remained stable and range from 2.50-4.50 per sq m per month. Highest rents are asked for warehouse space close to the city centres. With vacancy rates falling, Russian cities are becoming more expensive with net effective rents up to 5.50-7.50 per sq m per month. Rental increases are partially offset by the FXimpact of USD versus EUR. Regional markets in CE are generally less expensive with the exception of some Czech cities where low levels of supply are pushing up prices. Except for Bucharest most SEE markets have not seen significant leasing activity in recent quarters. As a result rents have remained under pressure and more hypothetical. During the last two quarters the prime yield gap between Warsaw and other CE capitals closed slightly on the back of further compression in Budapest and Prague. The current weighted average prime yield for CE stands at 8.2% which represents a 10 bps compression compared to Q3 2010. The same indicator for CEE stands at 11.2% reflecting a 20 bps compression compared to the end of Q3 2010. The industrial prime yield in CEE has remained around 150 bps above prime office yields. INVESTMENT MARKET In line with a general increased level of interest for property investment in CEE, the CEE industrial investment volume has shown continuous growth since the bottom of the cycle was reached in early 2009 Industrial 2009. property investment in 2010 reached 420 million and increased by 40% y-o-y. Industrial property investment made up for 10% of the total property investment volume reached in CEE in 2010. In 2011 this positive trend has continued. Year-to-date investment volume in 2011 amounts to 550 million. This volume is, however, positively impacted by the acquisition of the Europolis portfolio b CA I tf li by Immo. A th Another significant sale t k i ifi t l took place in the Czech Republic where EPISO acquired a portfolio of six logistics parks located in Prague and the northern part of the country. The developer VGP sold the schemes for around 300 million.
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2011, CB Richard Ellis, Inc.

CEE Industrial Investment Turnover

Ukraine Romania Hungary Bulgaria Slovakia Poland Czech Republic Logistics Turnover Share Russia Multi-country Croatia 25%

600

Industrial turnover as a % of total CEE prop perty investment

500 Million EUR

20%

400 15% 300 10% 200 5%

100

0 2006 H1 2006 H2 2007 H1 2007 H2 2008 H1 2008 H2 2009 H1 2009 H2 2010 H1 2010 H2 *2011 Q1

0%

* Q1 2011 volume is influenced by Europolis portfolio acquisition by CA Immo. Source: CB Richard Ellis (May 2011)

CEE Weighted Average Prime Logistics Yields

20 CE Logistics Yield Premium CE Logistics Yield EE L i i Yi ld Logistics Yield CE Office Yield SEE Logistics Yield

15 Prime yield (%)

10

0 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011

Source: CB Richard Ellis (May 2011)

CEE Logistics Prime Yields and Prime Rental Changes

Prime yield (%) 12.00% 8.75% 10.25% 9.00% 15.00% 13.50% 8.25% 11.30% 15.00% 9.50% 7.75% Change in prime yield y-o-y (bps) -100 0 -25 -50 -100 -50 -50 -70 -100 0 -100 Change in prime rent y-o-y (%) 0% 13% -1% 0% 0% 20% 0% -11% 0% -3% 0%

Market Belgrade Bratislava Bucharest Budapest Kyiv Moscow Prague Sofia St Petersburg Zagreb Warsaw

Source: CB Richard Ellis (May 2011)

May 2011 1

CEE MARKET ANALYSES

MarketV View CEE Big Box Logistics

The industrial market in Bulgaria is highly affected by the low consumer spending and the weak construction business. Development activity is still declining. New occupation will be driven by supply chain consolidation and companies outsourcing to 3rd party logistics providers. Export industries usually try to minimize their stocks in Bulgaria. Currently the Sofia market has a low availability rate of 4%. However, the market is unlikely to see significant absorption growth in the coming quarters. In Croatia there has been very little leasing activity in the industrial i d t i l sector. O t One major l j lease t transaction signed i ti i d in Q4 helped vacancy and rents remain rather stable. During the first quarter of 2011 a significant amount of space was delivered to the market, all of which was already pre-let to a large food retailer. There has been little change in effective rents since the end of Q3 2010. The Czech industrial market continued to perform very well. A a result of strong net absorption and relatively l ll As l f b d l l low new supply, vacancy has been on a decline for five quarters in a row and in Q1 2011 dropped below 8% on average in the regional cities and below 11% in Prague. Due to the start of a large project in Brno, the amount of space under construction in regional cities has increased rapidly, however, only 7% of the active pipeline is being built on a speculative basis. In 2010, despite strong demand, developers were cautious regarding new developments, but this has changed and we are already seeing a growth in developers interest for land once again. Moreover, a few developers will even deliver some space on a speculative basis. Very competitive rents have diminished in the majority of regions. In some regions with low vacancy, rents grew slightly in Q1 2011. Despite the positive change in fundamentals, the Hungarian industrial market is recovering only slowly. Due to the fact that some large warehouses became vacant in Q1 2011, vacancy has remained at around 22% in the Greater Budapest area despite stronger demand. The take-up has been gradually increasing since the bottom in 2009. New supply, however, is at a historic low with only a fully let scheme delivered in Q4 2010 Rents have 2010. remained stable for the last two quarters. In Poland demand remains strong with new deals amounting to 80 % of total leasing activity. In the regions the industrial market is improving mostly on the back of built-to-suit projects and pre-leases being signed. The vacancy rate has been decreasing much faster here than in the Warsaw region. A a result of li it d construction th W i As lt f limited t ti activity, availability is expected to decrease further, although a few speculative projects have been launched recently in Silesia and Wroclaw areas. The market in greater Warsaw should see further improvements in 2011 in terms of take-up, however, the existing vacant space needs to be absorbed before new projects will be considered. Downward pressure on effective rents around Warsaw is still registered, although it is d ll d lh h diminishing in h other popular regions of Poland.

In Romania during recent years major international automotive companies have developed their production facilities, mostly in the western part of the country. In cities like Craiova, Pit ti and Ti i lik C i Pitesti d Timisoara thi generates growing this t i business for the logistic operators. In Bucharest an important part of demand comes from production companies which are obliged to relocate from the city centre towards industrial areas. After three years of low activity, logistics operators and distribution companies are starting to look again for new industrial developments. The M h Moscow l logistics market reflects a h l h recovery. k fl healthy Leasing activity has continued to strengthen from the bottom reached during the crisis. During 2011 the amount of take-up is expected to outpace the amount of new deliveries to the market. Based on current market trends, rental rates are expected to edge higher. However, we should not expect rental rates to overcome the level of $130 per sq m per annum this year as we expect large volumes of new deliveries to enter the market in early 2012 that will push up vacancy levels. The industrial market in Serbia has not witnessed much change in the last two quarters. The modern warehouse sector is underdeveloped, with most of the properties being owner occupied and leasing activity remaining quite weak. The vacancy rate is estimated to be below 10%. Most of the pipeline projects have been postponed either due to financial difficulties or economic uncertainty. Rental levels are stable, and a major change is not anticipated during 2011. Its expected that the industrial market will pick up along with the economic recovery, with both domestic and international developers finding interest in logistic schemes. The Slovakian industrial market has seen low levels of development activity, with only one new scheme delivered in Central Slovakia in Q1 2011. Another 21,000 sq m of BTS space is currently under construction in Kosice but no scheme has been launched in Bratislava since Q3 2010. The amount of vacant space has reached a historical low level with vacancy falling below 3% in the capital city area. Despite the high b D it th hi h absorption i recent quarters and h ti in t t d hence the low level of current availability, speculative development may be undertaken only as adjacent space to BTS projects. The slow recovery of the Kyiv industrial market has continued. Demand for modern warehouse space increased and in combination with a virtual absence of new supply this caused the vacancy rate to d l h d h decrease to 17%. In Q1 2011, the largest lease since the beginning of the recession was completed on 20,000 sq m. Effective rental levels have remained stable compared to Q3 2010. The pipeline U/C has grown with currently over 100,000 sq m being actively under construction.

May 2011

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MarketV View CEE Big Box Logistics x

For more information regarding this MarketView, please contact: Jos Tromp Director, Head of CEE Research & Consulting CEE Research & Consulting t: +49 (0) 89 24 20 60 18 e: jos.tromp@cbre.com Patrick OGorman Director CEE Capital Markets t: +44 207 182 2723 e: patrick.ogorman@cbre.com Methodology & Definitions Central and Eastern Europe (CEE), includes the following countries: Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, R i S bi Sl P l d R i Russia, Serbia, Slovakia and Uk i ki d Ukraine. C t l E Central Europe (CE) i l d C h R includes Czech Republic, H bli Hungary, Poland and Slovakia. South Eastern Europe (SEE) includes Bulgaria, Croatia, Romania and Serbia. Eastern Europe (EE) includes Russia and Ukraine. Currency effects, the rents and capital values in Russia and Ukraine are based on indices denominated in US Dollars (USD) and are therefore influenced by exchange rate effects. Net Absorption, represents the change in occupied stock within a market during the survey period. Net Effective Rent, as presented in this report, represents a range of rental levels for a requirement of around 5,000 sq m in a modern logistics facility according to international standards. Net effective rents reflect payable rental levels already corrected for a total package of incentives applicable to the state of the market at that given time. Prime Rent, represents the top open-market tier of rent that could be expected for a unit of standard size commensurate with demand in each location, of the highest quality and specification and in the best location in a market at the survey date. In the case of industrial properties, prime rent is achievable for smaller unit sizes in y p p , p centrally (or strategically) located warehouses and not necessarily in logistics sheds. Prime Yield, represents the yield that an investor would receive when acquiring a grade/class A building in a prime location which is fully let at current market value rents. Prime Yield should reflect the level at which relevant transactions are being completed in the market at the time but need not be exactly identical to any of them, particularly if deal flow is very limited or made up of unusual one-off deals. If there are no relevant transactions during the survey period, a hypothetical yield should be quoted, and is not a calculation based on particular transactions, but it is an expert opinion formed in the light of market conditions, but the same criteria on building location and specification still apply. Total Leasing Activity, represents the total gross floor space known to have been let or pre-let, sold or pre-sold to tenants or owner-occupiers during the survey period, and also contract renewals are included. Total Stock, represents the total space completed (occupied and vacant) at the survey date, recorded as the gross rentable area. Pipeline, or Space under Construction, represents the total amount of gross rentable area of properties where construction has commenced on a new development or in existing properties and is ongoing at the survey date. Weighted averages, (Economy) are calculated based on a countrys 2010 nominal GDP published by Oxford Economics. Disclaimer 2011 CB Richard Ellis
Information herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee warranty or representation about it It is your responsibility to guarantee, it. independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients, and cannot be reproduced without prior written permission of CB Richard Ellis. Copyright 2011 CB Richard Ellis
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2011, CB Richard Ellis, Inc.

Gbor Borbly Senior Analyst CEE Research & Consulting t: +36 1374 3046 e: gabor.borbely@cbre.com Tom Listowski Associate Director, H d of I d t i l and Logistics CEE A i t Di t Head f Industrial d L i ti CEE Industrial and Logistics t: +48 22 544 8049 e: tom.listowski@cbre.com

May 2011